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| TITLE | 【Syllabus of Latest Opinion】 Supreme Court Decision 2023Du38295 Decided January 8, 2026 【Revocation of Disposition Imposing Corporate Tax】 [full Text] |
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| Summary | |
| 【Main Issues and Holdings】 [1] Purpose of the tax system under which a specific foreign corporation’s retained earnings are deemed dividends under Article 17(1) of the former Adjustment of International Taxes Act Meaning of “tax burden” under the foregoing provision that corresponds to “income actually earned” (held: the amount actually borne by the relevant foreign corporation) and whether “tax burden” is calculated by applying not only basic tax rate but also special provisions (affirmative) [2] Meaning of special relationship under Article 2(1)3 of the former Enforcement Decree of the Adjustment of National Taxes Act pursuant to the latter part of Article 35(2)2 of the said Enforcement Decree, and the method of evaluation when determining the satisfaction of the requirements to be deemed as a special relationship under Article 35(2)2 of the former Enforcement Decree of the Adjustment of National Taxes Act [3] In a case where Article 18(1)1 of the former Adjustment of International Taxes Act and Articles 35(2)2 and 2(1)3 of the former Enforcement Decree of the Adjustment of International Taxes Act apply, whether a foreign corporation located in the same country as a specific foreign corporation constitutes “a third-party foreign corporation” in a special relationship with the said specific foreign corporation (affirmative) | |
